Fernandez v. Brock

840 F.2d 622, 1988 WL 12965
Court of Appeals for the Ninth Circuit·Decided May 23, 1988·No. No. 86-2033·Published·Cited by 58 cases

Opinion

ORDER

The prior opinion in this case, filed July 20, 1987, 822 F.2d 865, is hereby withdrawn. The attached opinion is ordered filed in its place.

OPINION

WALLACE, Circuit Judge:

Four migrant farmworkers (farmwork-ers) appeal the district court’s order granting summary judgment to the Secretary of the Treasury and other federal officials and agencies (collectively “Secretary”). The farmworkers sought an order compelling the Secretary to promulgate regulations under the Employee Retirement Income Security Act of 1974 (ERISA), 29 U.S.C. §§ 1001-1461, that would govern pension plans for seasonal workers. We have jurisdiction pursuant to 28 U.S.C. [625] § 1291. We affirm in part and reverse and remand to dismiss in part.

I

The farmworkers have been employed for several summers as seasonal farm-workers by Kawahara, a strawberry grower. Kawahara maintains a pension plan for his employees. The farmworkers, however, have seldom been eligible to participate in the plan because they customarily were not employed at least 1,000 hours per year, the threshold set by Kawahara for participation. Moreover, the farmworkers accrued and vested few benefits because they rarely met the plan’s thresholds for accrual and vesting.

ERISA does not require employers to provide employees with pension plans, but it does require employers with plans to meet ERISA’s minimum standards for participating in the plan, accrual of benefits, and vesting of benefits. ERISA requires that an employee must be eligible to participate in a plan after “he completes 1 year of service,” which, for ordinary workers, is defined as 1,000 hours of employment in a 12-month period. 29 U.S.C. § 1052(a)(3)(A). Similarly, ERISA requires that an employee accrue benefits after a “year of participation,” defined as 1,000 hours of employment in a 12-month period. 29 U.S.C. § 1054(b)(3)(C). ERISA requires that benefits vest after a number of years of participation, according to varying formulas. 29 U.S.C. § 1053.

The statute declares, however, that “[i]n case of any seasonal industry where the customary period of employment is less than 1,000 hours during a calendar year, the term ‘year of service’ shall be such period as may be determined under regulations prescribed by the [Secretary].” 29 U.S.C. § 1052(a)(3)(B). The statute similarly provides for the promulgation of regulations governing the accrual and vesting periods for seasonal workers’ benefits. See 29 U.S.C. §§ 1053(b)(2)(C), 1054(b)(3)(D).

The farmworkers filed suit in district court seeking mandamus, declaratory, and injunctive relief. They contended that the Secretary has a duty to promulgate regulations under ERISA governing the participation, accrual, and vesting thresholds for seasonal workers. The Secretary moved for summary judgment on the grounds that the farmworkers lacked standing and that the statute did not obligate the Secretary to issue seasonal worker rules. The district court held that the farmworkers had standing but granted summary judgment after concluding that the Secretary’s authority to issue the regulations was discretionary.

II

A federal court’s “judicial Power” extends to “Cases ... arising under ... the Laws of the United States.” U.S. Constitution, art. Ill, sec. 2. It is not enough that a litigant claims that a violation of federal law has occurred; the litigant must have “standing” to invoke the power of a federal court. “Otherwise, the power ‘is not judicial ... in the sense in which judicial power is granted by the Constitution to the courts of the United States.’” Valley Forge Christian College v. Americans United for Separation of Church and State, Inc., 454 U.S. 464, 471, 102 S.Ct. 752, 758, 70 L.Ed.2d 700 (1982) (Valley Forge), quoting United States v. Ferreira, 54 U.S. (13 How.) 40, 48, 14 L.Ed. 42 (1852). In this case, we need only be concerned with those aspects of standing derived directly from the Constitution, although the doctrine of standing also encompasses several judicially imposed “prudential” requirements. See id. 454 U.S. at 471-72, 102 S.Ct. at 758. Standing for purposes of the Constitution is present when a plaintiff suffers actual or threatened “[1] personal injury [2] fairly traceable to the defendant’s allegedly unlawful conduct and [3] likely to be redressed by the requested relief.” Allen v. Wright, 468 U.S. 737, 751, 104 S.Ct. 3315, 3324, 82 L.Ed.2d 556 (1984) (Allen).

The question of standing in this case was raised as part of the Secretary’s motion for summary judgment. Ordinarily, a plaintiff opposing a motion for summary judgment on this issue would have to support, with [626] affidavits or other evidence, the factual allegations underlying the assertion of standing because such allegations must ultimately be proven for a plaintiff to prevail. See Gladstone, Realtors v. Village of Bellwood, 441 U.S. 91, 115 & n. 31, 99 S.Ct. 1601, 1615-16 & n. 31, 60 L.Ed.2d 66 (1979) ('Gladstone). For purposes of the present appeal, however, we will “ ‘accept as true all material allegations of the complaint ... ’ as standing was challenged largely on the basis of the pleadings.” Id. at 109, 99 S.Ct. at 1613, quoting Warth v. Seldin, 422 U.S. 490, 501, 95 S.Ct. 2197, 2206, 45 L.Ed. 2d 343 (1975). In reviewing a summary judgment, whether standing exists is a question of law we review de novo. Bruce v. United States, 759 F.2d 755, 758 (9th Cir.1985). The farmworkers argue that they have suffered two injuries traceable to the Secretary that will be redressed by ordering the Secretary to promulgate regulations. We consider each of these alleged injuries in turn.

A.

The first injury claimed by the farmworkers is the loss of pension benefits. This loss constitutes a personal economic injury sufficient to satisfy the first prong of the article III standing requirement. But this alone does not provide standing. Article III power to decide this case exists only if the second and third prongs of the test for standing are also satisfied: the injury must be fairly traceable to or caused by the Secretary’s failure to promulgate regulations and must be likely to be redressed by compelling the promulgation of regulations. Allen, 468 U.S. at 751, 104 S.Ct. at 3324. For purposes of .our disposition of this case, we will focus on the issue of redressability. See Allen, 468 U.S. at 753 n. 19, 104 S.Ct. at 3325 n. 19.

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Fernandez v. Brock, 840 F.2d 622, 1988 WL 12965 (9th Cir. 1988).

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